Market Share Versus Profits

Compared to the same period last year, EBR.B-US‘s change in revenue was close to the amount of its change in earnings. It remains to be seen how the rest of its peer group’s results will turn out and if EBR.B-US‘s performance is a sign of any major shift in the composition of market share in this sector. Also, for comparison purposes, revenues changed by 41.64% and earnings by -819.72% compared to the previous period.

Earnings Growth Analysis

The company’s earnings growth was influenced by year-on-year improvement in gross margins from 49.56% to 50.33% as well as better cost controls. As a result, operating margins (EBITDA margins) rose from -112.15% to -43.99% compared to the same period last year. For comparison, gross margins were 53.36% and EBITDA margins were 15.17% in the last reporting period.

Cash Versus Earnings – Sustainable Performance?

It is important to examine a companyï¿½s cash versus earnings numbers to gauge whether its performance is sustainable.

EBR.B-US‘s year-on-year change in operating cash flow of -122.87% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -118.43% to -48.19% and (2) one-time items. The company’s pretax margins are now -63.34% compared to -139.88% for the same period last year.

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